Thanks for making this video. IMO, the world needs to know more about credit spreads and how selling options is the safety way to trade options For you video, I would recommend that in the beginning, you state that the minimum account balance needed for a Level 3 options account is $2,000. You will need a $2K account just to start trading credit spreads. At least this is what I know, from the US, trading in a Webull account. Then I would mention that that the smallest credit spread you could trade is a $1 wide spread. This will cost you a maximum of $100 per trade. These are the two things I would add to your video. Just though I'd share. Keep up the good work. :)
Thanks for the kind words! As for minimums, these will be set by the brokerage. Webull has their rules, as do the others, and aren’t always the same. As a result, I try to stay clear of discussing individual brokerage accounts. On that note, what’s your favorite trade these days?
I really find this video helpful. I loved learning the bull put spread as a way to learn and practice. Thanks for explaining RSI and MacD and giving parameters. I also like the tip of closing the trade at 80% profit.
Hi Rick! Thanks a lot for this video. I'm new to your chennl. What will happen, if the market price move between the 2 strikes? We will get assigned in one leg ? In this case a small account will not have enough money to buy the underlying, for eg the Spx, we need $51300?
Great video with easy to understand explanations, Rick, thank you! Do you have a video that goes over pin risks and risks associated with one-leg early assignment?
Very kind of you to say. I might have something. Let me know if it’s what you’re looking for- otherwise, ill get you in the right direction. Video: 🔥 The Risks of Selling Put Options: Is It Safe & When Should You Do It? ruclips.net/video/vFf1Ty6yFhE/видео.html
Great video. But I'm trying to input an order and my order is giving me options of Price type: Net credit, Net debit and Even.....?? Which one should I choose?
@@RickOrford I was trying to do exactly what you were showing on the video. I didn't have an option to do a limit order either, I ended up doing a market order.
Hi Rick! I'm new to your channel. (I did subscribe) I am 63 years old and have no savings. I do plan to retire next April, and this seems like the best way to supplement my social security. Thanks for all you do. Sorry I keep trying to set the trolls straight. Seems like people with a couple of subscribers like to try to tell you how to improve your channel. They get on my nerves. Lol!
@@RickOrford Hi Rick! It would be awesome if you could do a video on the basics of setting up your trading platform for options trading. I recently signed up for Webull because I heard you can paper trade there. But setting it up seems complicated.
Hi Rick, Thanks a lot for the video, extremely clear and informative. Should I be able to execute a bull put spread on Interactive Brokers on a cash account, though? I've tried placing a spread but I can get an error message that tells me that I don't have enough margin. Can you shed any light? Thanks a lot, Rob
Hi Rick, great video! Curious about something though ... when selling Bull Put spreads, what are the chances one of the orders goes through, but not the other. Ex: your Put buy goes through, but your put sell doesn't? Would you just adjust your ask lower until it goes through?
Ahhhh great question! If you’re using a non-options friendly broker, this could happen. If you’re using a company like Interactive Brokers, a spread would be entered as a single trade- so both options would be filled.
@mlaposta good choice! I’d also look at an options scanner like rickorford.com/samurai or rickorford.com/barchart - and of course join my discord! Hope to see you there!
Be careful as expiration nears. I've seen where 1 part gets closed early but the other side open. Also, option market closes 1 hour after regular market. Better to close out a winning position before regular market close than get burned after
@@rogerward801 Indeed. I was just watching a vid last week from projectfinance (ruclips.net/video/rtVFj9nRRDo/видео.html) where he talks about exactly this. I feel like it's something a lot of youtubers don't talk about, and yet it's something that should be made super clear in any credit spread video!
I am bewildered. At 6min 9sec you said: "As long as the strike price stays above the break even point -- which is the premium less the short strike price -- you'll be profitable." I expected you to say: "As long as the MARKET price of the underlying (stock or what have you) remains above the break even point -- which is the premium received from the short put less the COST of the LONG PUT -- you'll be profitable." If it is apparent to you why I am confused, could you please tell me where I have gone wrong?
Sounds like a topic for a new video. The thing is though, once you start selling options on a regular basis, income will come in regularly- especially if you’re selling credit spreads.
How does one get approved by a brokerage to trade credit spreads? I opened an account months ago and they will not let me trade credit spreads and will not tell me what I have to do to get approved. Very frustrating. Can you recommend a brokerage that is rational and communicative? No one talks about this ...I can't be the only one getting this treatment.
If you sell a put contract and get assigned you end up buying the shares. If you buy a put contract and the stock goes under the strike price, you end up selling the stock. I hope this makes sense...?
@kevinnoel4647 if you sell a bull put, you’ve got a short position and a long position. If you’re assigned on the short put, that means you’ve bought 100 of the underlying. Now, you have three choices: 1) exercise YOUR long put (sell your 100 shares @ the strike), 2) sell your shares and long put at the market price, or 3) keep the shares.
🔥 Join me on Discord: rickorford.com/discord
Thanks for letting us know about this, I have joined!!! Great little opportunity
Watch out for scammer rickorford_ once you join the group - he/she almost got me... (only difference is _ after the name.)
Might have missed this. Is the spread IN or OUT of the money at execution or IN & OUT ?
Thanks for making this video. IMO, the world needs to know more about credit spreads and how selling options is the safety way to trade options For you video, I would recommend that in the beginning, you state that the minimum account balance needed for a Level 3 options account is $2,000. You will need a $2K account just to start trading credit spreads. At least this is what I know, from the US, trading in a Webull account. Then I would mention that that the smallest credit spread you could trade is a $1 wide spread. This will cost you a maximum of $100 per trade.
These are the two things I would add to your video. Just though I'd share. Keep up the good work. :)
Thanks for the kind words!
As for minimums, these will be set by the brokerage. Webull has their rules, as do the others, and aren’t always the same. As a result, I try to stay clear of discussing individual brokerage accounts.
On that note, what’s your favorite trade these days?
I really find this video helpful. I loved learning the bull put spread as a way to learn and practice. Thanks for explaining RSI and MacD and giving parameters. I also like the tip of closing the trade at 80% profit.
Glad it was helpful! Let me know how a future trade works out!!
Thank you! EXCELLENT presentation. Did not know about about Options Samurai!! Most helpful!
Happy to help! Let me know if you have any questions about it!
Hi Rick! Thanks a lot for this video. I'm new to your chennl. What will happen, if the market price move between the 2 strikes? We will get assigned in one leg ? In this case a small account will not have enough money to buy the underlying, for eg the Spx, we need $51300?
Hello, Rick! Can selling put be exercised above the strike?
If someone exercises the put, you’ll buy at the strike.
Great video with easy to understand explanations, Rick, thank you! Do you have a video that goes over pin risks and risks associated with one-leg early assignment?
Very kind of you to say.
I might have something. Let me know if it’s what you’re looking for- otherwise, ill get you in the right direction.
Video: 🔥 The Risks of Selling Put Options: Is It Safe & When Should You Do It?
ruclips.net/video/vFf1Ty6yFhE/видео.html
@@RickOrford Thank you! I am adding this to my watch list.
Can I be assigned before expiration?
Yes!
Thanks for the great explanation. May I ask
What's the subscription price of options samurai? Is it worth for a small account?
Great video. But I'm trying to input an order and my order is giving me options of Price type: Net credit, Net debit and Even.....?? Which one should I choose?
Hurm- I’m afraid I don’t have enough info.
Are you trying to sell a credit spread? What are the legs?
@@RickOrford I was trying to do exactly what you were showing on the video. I didn't have an option to do a limit order either, I ended up doing a market order.
Ah. Its possible your brokerage doesn’t offer a limit order on credit spreads. Have a look at interactive brokers!
Well to make a breakthrough in understanding the basics for a beginner is going to take time but it's going to be worth.
Absolutely!!!
Did you have exercise that SPY put spread?
As a seller, you wouldn’t assign… your goal is for the short option to expire worthless.
Hi Rick! I'm new to your channel. (I did subscribe) I am 63 years old and have no savings. I do plan to retire next April, and this seems like the best way to supplement my social security. Thanks for all you do. Sorry I keep trying to set the trolls straight. Seems like people with a couple of subscribers like to try to tell you how to improve your channel. They get on my nerves. Lol!
I appreciate the kind words :) folks love to point out what’s not important. Do let me know any topics you’d like me to cover!
@@RickOrford Hi Rick! It would be awesome if you could do a video on the basics of setting up your trading platform for options trading. I recently signed up for Webull because I heard you can paper trade there. But setting it up seems complicated.
@WarriorMindset339 thanks for the kind words as usual :) try Interactive brokers. Their mobile app platform is amazingly easy!
Hi Rick, Thanks a lot for the video, extremely clear and informative. Should I be able to execute a bull put spread on Interactive Brokers on a cash account, though? I've tried placing a spread but I can get an error message that tells me that I don't have enough margin. Can you shed any light? Thanks a lot, Rob
Thanks for the kind words! You’ll likely need to convert your account to margin. Then you’ll be able to sell options (ie spreads!). Keep me posted :)
@@RickOrford Hi Rick, You were right! I switched to a margin account and I'm up and running with my bull put spreads! Keep up the good work!
@DennisYard excellent. By chance, are you using options samurai to search for the spreads? If not, check out rickorford.com/samurai
Hi Rick, great video! Curious about something though ... when selling Bull Put spreads, what are the chances one of the orders goes through, but not the other. Ex: your Put buy goes through, but your put sell doesn't? Would you just adjust your ask lower until it goes through?
Ahhhh great question! If you’re using a non-options friendly broker, this could happen. If you’re using a company like Interactive Brokers, a spread would be entered as a single trade- so both options would be filled.
@@RickOrford That's who I was planning to use, so that's great to hear! Thanks Rick.
@mlaposta good choice! I’d also look at an options scanner like rickorford.com/samurai or rickorford.com/barchart - and of course join my discord! Hope to see you there!
Be careful as expiration nears. I've seen where 1 part gets closed early but the other side open. Also, option market closes 1 hour after regular market. Better to close out a winning position before regular market close than get burned after
@@rogerward801 Indeed. I was just watching a vid last week from projectfinance (ruclips.net/video/rtVFj9nRRDo/видео.html) where he talks about exactly this. I feel like it's something a lot of youtubers don't talk about, and yet it's something that should be made super clear in any credit spread video!
I am bewildered.
At 6min 9sec you said: "As long as the strike price stays above the break even point -- which is the premium less the short strike price -- you'll be profitable."
I expected you to say: "As long as the MARKET price of the underlying (stock or what have you) remains above the break even point -- which is the premium received from the short put less the COST of the LONG PUT -- you'll be profitable."
If it is apparent to you why I am confused, could you please tell me where I have gone wrong?
👍thx
Thanks for watching!
Is there a successful strategy for ladderimg options to generate monthly income?
Sounds like a topic for a new video. The thing is though, once you start selling options on a regular basis, income will come in regularly- especially if you’re selling credit spreads.
Great content
Thank you!!
How does one get approved by a brokerage to trade credit spreads? I opened an account months ago and they will not let me trade credit spreads and will not tell me what I have to do to get approved. Very frustrating. Can you recommend a brokerage that is rational and communicative?
No one talks about this ...I can't be the only one getting this treatment.
Try interactive brokers! Also, you can try my discord server and see what others are using :)
It's not guessing. It's called calculated risks.
Why is the person buying the option called the "seller " and not the buyer?
If you sell a put contract and get assigned you end up buying the shares.
If you buy a put contract and the stock goes under the strike price, you end up selling the stock.
I hope this makes sense...?
@kevinnoel4647 if you sell a bull put, you’ve got a short position and a long position. If you’re assigned on the short put, that means you’ve bought 100 of the underlying. Now, you have three choices: 1) exercise YOUR long put (sell your 100 shares @ the strike), 2) sell your shares and long put at the market price, or 3) keep the shares.
Dude, get yourself one of those little bluetooth microphones! It will affect production value way more than you think.
Did you even watch the video? The sound is perfect, so stop trying to critisize people. He has 19,000 subscribers, and you have 9
@@WarriorMindset339 I don't need subscribers.
Yeah, but an opportunity loss is not a realized loss. It’s just a bummer that you didn’t make all the money…
Correct- not realized. Losing (realized or not) is always a bummer!
Bull put spread sounds so GAY